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Friday Alert
Friday, January 9, 2009(Alliance for Retired Americans)
Obama Promises Bid to Overhaul
Spending on Retiree Programs
On
Wednesday, President-elect Barack
Obama said that overhauling spending
on retiree programs would be "a central part"
of his administration's efforts to contain the
federal budget. According to The New
York Times, in doing so, he signaled for
the first time that he would be wading into an
area historically fraught with danger for
politicians and leaders. Obama said that
he would have more to say about the issues when
he unveils a budget next month. "The
Alliance will reiterate our policy positions
and stress the need for the quality of life of
seniors not to suffer," said George J.
Kourpias, President of the
Alliance. "We appreciate that
President-elect Obama has consistently opposed
privatizing Social Security and is for raising
the caps on income subject to the Social
Security tax, which will help the finances of
Social Security. He also wants to reduce
Medicare waste and fraud and introduce more
efficiencies, and plans not to tax the first
$50,000 of seniors' income. We are
confident that he will continue to stand up for
retirees."
Health Spending Climbs at Lowest
Rate in Years, But Still Causes Budget
Havoc
Health care spending grew at
its lowest rate in nearly a decade in 2007, but
it continued to consume an ever-bigger portion
of U.S. gross domestic product and family
budgets, a new federal study shows.
Quoting the Health Affairs periodical,
The Wall Street Journal reported on
Tuesday that the nation's health care tab grew
6.1%, to $2.2 trillion, or $7,421 a
person. That is down slightly from the
6.7% growth in 2006. Spending again
expanded faster than the overall economy,
suggesting health care's share of GDP will
climb as the economy remains stuck in a
recession. In 2007, health care comprised
16.2% of GDP, up from 16% in 2006. While
most health care services grew at the same rate
or faster in 2007 than in 2006, the pace of
prescription-drug spending slowed to its lowest
rate in 45 years, climbing 4.9%, compared with
an 8.6% increase the year before. The
slower growth stems primarily from big shifts
in the pharmaceutical landscape. Generic
drugs, which can be 80% cheaper than their
brand-name versions, have been used more
widely. Also, more consumers are cutting
back on medicines. "The number of
prescription filled actually fell at the
beginning of 2008, for the first time in at
least a decade," said Ruben
Burks, Secretary-Treasurer of the
Alliance. "That is an alarming sign of
people not getting their much-needed
medications."
Retirees Changing Plans Amid
Declines in Home Equity
Many
Americans have recently found themselves
changing their retirement preparations after
losing a substantial amount of home equity, as
the housing market and the overall U.S. economy
struggle. According to http://www.msnbc.com/ , the
good news is that about 30% of homeowners have
no mortgage at all. Therefore, even
though their properties are probably worth less
now than a few years ago, those owners can tap
into that equity cushion if necessary.
Many Americans are exploring options other than
home equity as a fail-safe, especially if they
have no other retirement investments or
savings. Options include downsizing their home,
selling assets, postponing retirement by
working longer, and signing up for a reverse
mortgage. Staying on the job has benefits
besides a paycheck. Employment is often a
requisite in qualifying for mortgage
refinancing. In addition, finding a
smaller and less expensive home has long been
relied upon to bolster retirement
budgets. Ideally, profits from the sale
of a larger home can be used to buy a smaller
home with cash, with no mortgage, and the
homeowner can pocket the rest. However,
the current environment of falling home values
and tight credit has made moving more
difficult.
New Online Tool Makes Sharing
Alliance Videos Easier
The
Alliance has launched two new channels on the
video-sharing site YouTube, making it easier to
find and distribute our online videos.
Visit http://www.youtube.com/user/RetiredAmericans
for ads, stories and other content from the
Alliance for Retired Americans, and go to http://www.youtube.com/user/RetiredAmericansPAF
to view the 2008 election ads produced by the
Alliance for Retired Americans Political Action
Fund. "Thank you to everyone who has
participated so far in the Alliance's video
project by sharing your experiences on camera
at the regional conferences and Retiree
Roadrunner events. We will continue
posting your stories on these channels as the
videos are edited," said Edward F.
Coyle, Executive Director of the
Alliance. If you are a state or local
organization already posting material on
YouTube, please contact us at ARAFridayAlert@retiredamericans.org
so we can link to your videos.
Ask About Screenings During
Cervical Cancer Awareness
Month
January is Cervical Cancer
Awareness Month, and the Coalition of Labor
Union Women (CLUW) is continuing its campaign
to educate older women about the benefits of
screenings and other preventative measures. In
October, CLUW joined the National Council of
Women's Organizations (NCWO) in an effort to
inform older women about the importance of
advanced cervical cancer screening
technologies. The online campaign, "Note to
Older Women: Ask About Cervical Cancer
Screening, Ask About HPV Testing," encourages
all women to ask their health care providers
about determining their risk for cervical
cancer through screening and HPV testing.
While preventable, the American Cancer Society
estimates 11,070 women in the U.S. are
diagnosed with cervical cancer and 3,870 will
die of the disease each year. Women aged
65 and older account for 20% of new cases,
according to the National Cancer
Institute. To learn more, visit the
CLUW's Cervical Cancer Prevention Works program
at http://www.cluw.org/cervcancer.html.
Reminder: 2009 Alliance Legislative
Conference Moved to June
Change has
come to Washington! To take advantage of
this unprecedented time in history, the
Alliance has moved up its 2009 Legislative
Conference to June 15-18, in Washington,
DC. Alliance members will have the
opportunity to meet with Congressional
representatives and Administration officials,
organize grassroots activities to improve
Medicare and strengthen retirement security,
and ensure that seniors get the change we
fought for in 2008. Look for registration
details to be available soon.
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